MADISON, Wis. – Online sales platforms get more popular every year, but many consumers are unaware of the unique risks online shopping can present or do not know how to shop online safely.
During the busy holiday season, e-commerce can be a convenient and time-saving option for consumers buying gifts for their friends and loved ones. But in 2024, consumers made over 380,000 reports to the Federal Trade Commission (FTC) about online shopping. This includes over 5,000 reports from Wisconsin consumers, making it the state’s top fraud category reported to the FTC. By asking themselves a few questions as they shop, consumers can keep their money and personal data protected from scammers and dishonest businesses.
“Is this website safe?”
Scammers create fake websites that are sophisticated and convincing copies of real sales platforms that consumers trust and use every day. Scammers lure consumers to these sites with fraudulent ads, text messages, and emails which invite them to click a link. The scammer might say there is a big holiday sale or that the consumer needs to verify a recent return. Fake websites can even appear in search results. When consumers enter their password or payment details to make a purchase, the scammer gets exactly what they wanted.
To identify and avoid fake websites, consumers should:
- Never click links or ads found on social media or sent by text, email, or direct message. Instead, directly type in a trusted website’s address.
- Be skeptical of unusually low or too-good-to-be-true prices. Scammers use these to lure shoppers to their website.
- Check the web address for errors before entering personal information.
“Is this product real?”
Misleading and fake products are common on the internet. Consumers can find them posted in classified ads and social media marketplaces, on popular third-party sales platforms, and promoted in paid advertisements and social media posts. Product descriptions and ads might make untrue claims or misrepresent a product. Consumers can avoid disappointment and potential scams by adding a few items to their checklist before they buy:
- Avoid impulse buying and high-pressure sales tactics.
- Research and read reviews of the product and company.
- Carefully read product descriptions to check what exactly is being sold.
“Am I shopping securely?”
Consumers are their own first line of defense against scams and online risks. They can take several actions to set themselves up for shopping success and security:
- Create unique passwords for every account so that if a scammer gains access to one, they will not be able to access any others.
- Avoid purchases while on public Wi-Fi networks to avoid payment information being stolen by a data thief.
- Use credit cards to make online purchases for the best protections against fraud.
The federal INFORM Consumers Act protects online shoppers who use sales platforms that allow third-party sellers to list their products. The law requires sales platforms to verify certain high-volume third-party sellers and give shoppers a way to report suspicious conduct, such as:
- Counterfeit and fraudulent sales.
- A product’s description or listing differing from the real product.
- A product being unexpectedly damaged or deteriorated.
- Branded merchandise being sold at unusually low prices.
For more information and consumer protection resources or to file a complaint, visit DATCP’s Consumer Protection webpage at ConsumerProtection.wi.gov or contact the Consumer Protection Hotline at (800) 422-7128 or DATCPHotline@wisconsin.gov.
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